Page 1 · The big shift
What your lender is really thinking
The economy has become harder to read:
- Borrowing has gotten more expensive
- Growth has slowed
- Prices for everyday things have stayed high
When times are uncertain, lenders get careful. In banking right now, careful means one thing: they want security.
A year ago, a healthy business with good sales could often borrow on its name and numbers alone. Today most lenders want something solid backing the loan that they could sell if things went wrong. This one shift is behind almost every “no” that surprises a business owner today.
They haven't stopped lending, they're lending carefully. Backed by something real, the conversation is easy. If not, it's a much harder yes.
Two words worth knowing
Secured loan
You back the loan with something valuable you own, like property. If you can't repay, the lender can take that asset. Because the lender has that safety net, it's easier to get and often cheaper.
Unsecured loan
You borrow on the strength of your business alone, with nothing specific pledged. It's harder to get today, and it's exactly the kind of lending banks have pulled back on.
The takeaway: the door to financing is still open, but the easiest way through it now is a secured loan. The good news: you may have more to offer as security than you think.
Page 2 · Behind the curtain
What your bank is worried about right now
Every loan today is decided by a credit committee asking one question: in this economy, will this borrower still be able to pay us back?
Here's what they're watching, and what each one means for you.
Sources: Bangko Sentral ng Pilipinas, Philippine Statistics Authority, Bankers Association of the Philippines
Prices are still high, and money got expensive. Everyday costs stayed high this year. To fight that, the BSP raised interest rates three times, from 4.25% to 5.00%. So banks assume two things about every borrower: your costs are up, and your loan payments will be bigger than before.
The economy is growing slowly. The economy grew just 2.3% from April to June, down from 5.4% a year earlier. That's the slowest since 2009, excluding the pandemic. Banks read that as a warning that sales will be softer across the board, and expect some businesses to struggle.
The peso is weak against the dollar. The peso has fallen to record lows. For most businesses that's a cost problem, because imports get pricier. But if you earn in dollars, your income is worth more in pesos exactly when the peso is weak.
So here's what they're looking for
You earn some dollars.
Even a portion of your income in dollars makes you far more attractive. It's a built-in cushion against a weak peso.
You sell what people can't stop buying.
Essentials like food, medicine and basic services over nice-to-haves. Defensive businesses get a warmer welcome than ones selling luxuries or big-ticket extras.
You keep your customers by offering a cheaper option, not by losing them.
When money is tight, customers look for cheaper choices. A smart business meets them there, with a lower-priced version so the customer trades down instead of walking away. You keep their spending; you just capture it at a different price.
Page 3 · Your options
What you can borrow against
When a lender asks for security, they usually mean property: land or buildings you own. But not all property is equal in a banker's eyes. Here are the four main types, what lenders think of each, and the catch to watch for.
Residential: a house and lot, or a condo
Why lenders like it
It's the most familiar type; nearly every bank understands it and will lend against it readily.
The catch
Banks lend a smaller slice of a home's value than most owners expect. If it's the family home, you're putting the roof over your head on the line. A clean, clear title matters more than anything.
Commercial: a store, office, or building on a business street
Why lenders like it
It earns money and, in a good location, holds its value well.
The catch
Its worth rises and falls with the location and the economy. With many offices and spaces sitting empty right now, expect a cautious appraisal.
Industrial: a warehouse, factory, or facility
Why lenders like it
For a real operating business, this is often the strongest security you can offer. It's valuable and tied to genuine production.
The catch
It's specialized. If the bank ever had to sell it, fewer buyers would want it, so they'll look closely at the location and whether it could be used for something else.
Agricultural: farm land or a plantation
Why lenders like it
It can absolutely work as security, especially with a lender who knows agriculture.
The catch
It's the hardest of the four. Many banks are wary: farm land is slow and complicated to sell, titles are often tangled (some can't be freely transferred), and it's worth less per unit of land. This is where having the right lender matters most.
Don't count yourself out.
If your only property is the harder kind, or it was given a low appraisal, that is not the final answer. Different lenders see the same property very differently. Which is exactly why the next section matters.
Page 4 · The way through
Why one “no” is not the answer
The most important thing in this whole guide: the banks are not all the same.
When one lender says no, most business owners assume that's the market's answer, and they stop. But a no from one bank is just that bank's answer, for its own reasons. Another lender, with a different appetite, may say yes to the same business.
This is what our network is for. Buhay works with a network of SEC- and BSP-registered financial institutions across the country. We see which doors are open and which are closed, for which kinds of business and which kinds of security. So instead of you knocking on one door, getting a no and giving up, we take you straight to the lenders most likely to say yes to your situation.
It's not just about getting a yes. It's about getting the best deal.
Two things most business owners never find out:
Starting with your property can open the door to borrowing a little more on top.
When you lead with a secured loan, the lender gets comfortable, and a comfortable lender is often willing to add a bit more that isn't tied to the property. It doesn't always happen, but starting from strength is what makes it possible.
Banks lend you only a slice of your property's value, and that slice grows when they compete.
If your property is worth ₱10 million, a bank won't lend you the full ₱10 million; it lends a portion and keeps a cushion. That portion is negotiable. With one bank looking at your deal, you take what they offer. With two or three competing, each has a reason to offer a bigger slice to win you. More money in your hands, against the same property.
The difference between a meeting and a contest
A meeting
Most CFOs can get you a meeting with a bank. Very few can get two or three banks competing for your business. That difference, a take-it-or-leave-it offer versus a real contest, is often the difference between an okay deal and the best one on the table.
A contest
That's what Buhay is built to do. It starts with knowing exactly which lenders want a deal like yours right now. That's what lets us create genuine competition for you, instead of sending your file around and hoping.
Page 5 · Your next step
How to get ready, and start
You don't need to be a finance expert to be ready. You just need a clear picture of your business and what you own. The better prepared you are, the faster and smoother the yes.
Know what you own.
List any property (house, store, warehouse, land) and make sure you can find the titles. Clean, clear titles are the single biggest thing that speeds up a loan.
Have your numbers handy.
Two to three years of business records: sales, tax filings, bank statements. You don't need to interpret them; just have them ready.
Know what you need the money for.
A lender trusts a borrower who knows exactly what the loan is for and how it'll be paid back. "To grow" is vague; "to buy this equipment, which earns this much" is strong.
Don't let one rejection stop you.
If you've been turned down, that's information, not a verdict. Bring it to us; it often tells us exactly which other lender is the right fit.
The simplest next step: talk to us.
Tell us about your business and what you own. There's no cost to find out where you stand, and no pressure. We'll tell you honestly what's possible, and if it is, we'll take you to the right lender.
Adriel Maniego
Founder & CEO, Buhay Platforms Inc.
Manila Bulletin Newsmaker of the Year
Accredited, QC, Cebu, Metro Angeles, Pampanga & Manila Chambers
SEC Reg. No. 2025010186147-22 · DTI Trustmark Registered No. 250917-13270271.
Buhay Platforms connects business owners to a network of SEC- and BSP-registered financial institutions. The lender lines in this guide reflect the kind of feedback we hear across our network, not statements from any specific institution. This guide is general information to help you prepare, not a loan offer or financial advice. Every loan is subject to the lender's own approval. © 2026 Buhay Platforms.